Carney & DNREC Sign Agreements with US Wind; Caesar Rodney Institute Files Appeal
On Monday, Governor John Carney and DNREC officials signed agreements with US Wind to detail renewable energy, community and lease benefits to Delaware and its residents worth more than $128-million as US Wind builds two proposed offshore wind projects in coming years. This finalized the agreements after US Wind received needed federal and state environmental and permit approvals last December.
However, the Caesar Rodney Institute and other opponents of the US Wind project have filed an appeal of the decision of DNREC Secretary Garvin to permit the transmission lines saying the statutory and regulatory requirements were not met and that the permits for going under the Bay and into the wetlands require zoning approval before the permit is considered complete. In December the Sussex County Council voted to deny a conditional use application from a US Wind subsidiary to build a substation next to the Indian River Power Plant.
Additional information from Gov Carney:
The finalized agreements include:
- An agreement with DNREC’s State Energy Office to provide 150,000 renewable energy credits (RECs) each year associated with the wind generation, which will be transferred to Delaware utilities to help them meet clean energy requirements, thus lowering customer bills. The RECs have an estimated value of $76 million over the life of the projects.
- An agreement for US Wind to fund coastal waterway dredging, clean energy workforce training, environmental scholarships, and resiliency and capital projects at state parks. The community benefits agreement is worth $40 million over 20 years.
- A lease with Delaware State Parks for underground access for power transmission cables at Delaware Seashore State Parks. Lease payments from US Wind will total more than $12 million over 25 years.Â
The three agreements facilitate what are likely to be among the first wind projects in operation in the mid-Atlantic. The projects will sell carbon-free power into the regional power grid, and this new source of power generation is projected by US Wind to lower electric costs for Delaware ratepayers by up to $253 million over 20 years. US Wind will also invest more than $200 million in transmission system upgrades.
“With the recent federal and state project approvals, we are ready to reap the environmental, health, workforce, energy cost and community benefits from this needed transition to renewable energy,” said Governor Carney. “Delawareans will benefit in numerous ways from this important agreement.”
“The DNREC State Energy Office’s recently released State Energy Plan emphasizes the need for offshore wind development in order to reach our emissions reduction goals, and the need to consider partnerships with other states and wind project developers to reduce costs,” said DNREC Secretary Shawn M. Garvin. “Additionally, the funding for dredging, resiliency and parks projects and workforce training will provide needed resources to protect and preserve Delaware’s natural resources for decades to come.”
“These agreements signify our continued commitment to providing meaningful and lasting benefits to the people of Delaware from our projects,” said Jeff Grybowski, US Wind CEO. “Our project will deliver a massive amount of new electricity directly into the regional electric grid in Delaware, which means a lot of benefits locally. Specifically, we will fund over $200 million in upgrades to the transmission system, resulting in a much stronger and more reliable local grid and good jobs for local electrical workers. Delivering this new electricity to the power grid in Delaware will also lower electricity bills for Delawareans, including Sussex County residents. We’re grateful for the continued partnership with the state and look forward to working together for years to come.”
The Caesar Rodney Institute counters:Â
This lack of adherence to proper permitting processes is not the only issue at stake. On December 17, 2024, the Sussex County Council voted by a 4-1 margin to deny the conditional use that a US Wind subsidiary had requested to build a substation next to the current Indian River Power Plant. CRI commends the Council for their willingness to stand up for the citizens of Sussex County, DE.
The Council’s decision aligns with broader concerns raised by CRI about DNREC’s failure to account for federal warnings regarding the project’s environmental impact. Additionally, CRI challenges the lack of support for the Secretary’s decision. Several federal agencies recommended against the transmission lines going under the Bay, citing the value of the natural resource and the fact that it is already stressed. Permitting requires alternative options to be considered, but DNREC ignored alternate approved land-based cable routes in approving the worst choice for the local ecology.
“The project is called the Maryland Project for a reason. The US Wind project offers no real benefits to Sussex County but assumes all the risk and liability to our environment.”
–Dave Stevenson, CRI’s Director of Center for Energy & Environmental Policy.
The controversy surrounding this project doesn’t stop with environmental risks. Defenders of offshore wind falsely state the US Wind project benefits Sussex County, DE. Claims include the project will reduce sea level rise, improve electric grid reliability, lower electricity prices, and that US Wind will grant millions of dollars in payments to beach towns and the state.
However, a closer look at the facts reveals a very different reality. The federal Final Environmental Impact Statement concludes on page 135, “US Offshore Wind projects would likely have a limited impact on global emissions and climate change.”
Additionally,
- The US Wind project is only 4% of the total offshore wind goal, so it will have no measurable impact on global warming and sea level rise.
- The planned transmission line investment is entirely related to connecting project power to the regional grid and does not impact local grid reliability.
- An economic model calculates a $9 per year reduction in residential electric prices in the second decade of the project. However, the model has an error bar of +/- $22 per year, so the stated savings have no statistical significance.
- The proposed grants total about $4 million annually for twenty years in current dollars. That is completely wiped out by just a 3% loss in tourism in one year.
The flaws in DNREC’s approval process are further complicated by potential conflicts of interest. When denied access to Maryland sites to bring the transmission lines ashore, US Wind was offered access to Delaware through 3Rs Road in our Seashore State Park through an agreement with Governor Carney that included payments to the State from US Wind. That agreement establishes a conflict of interest in granting permits.Â
CRI acknowledges and appreciates the efforts of those who have stood alongside us in opposition to this project. We thank our friends who have joined us in this appeal and look forward to a full public hearing on the terrible consequences this project will have on our natural resources. CRI is joined by two commercial fishermen, Wes Townsend and George Merrick, the Mayor, Natalie Magdeburger, and the Town of Fenwick Island, and the Tower Shores Beach Association, a homeowner’s association of the development just south of 3Rs Road, where the transmission lines are proposed to come ashore.
